Botswana has adopted policies in its construction industry aimed at developing its citizen contractors to a standard comparable to any other. Towards this end, it has instituted a number of interventions one of which is to provide these contractors with an advance loan to enable them mobilize on site. This facility greatly enhances their chances of success.
This study is an evaluation of this scheme and provides a valuable feedback on the scheme's effectiveness, its shortcomings as well as offering some suggestions as to how its administration can be improved. This it does through a critical analysis of the performance of beneficiaries over a six-year period, identifies reasons for their failure and tries to address concerns of the key players in the application of the scheme.
The major findings are that the scheme has not been as successful as expected. The biggest problem seems to be the diversion of loan funds from their intended purpose. Rigorous sustained training of contractors and monitoring of their progress in skills attainment is the recommended solution. The Government's intervention should also target other role players in the industry for support including emerging suppliers and plant leasing companies, to break down existing monopolistic structures
